DETROIT (Reuters) – General Motors’ earnings nearly doubled in the second quarter exceeded market expectations, thanks to an increase in market share, particularly in the United States, the number one U.S. auto .
Accompanied by several group executives, the CEO Dan Akerson said GM had reduced its costs enough to shelter a possible return of the U.S. economy into recession.
Net income stood at $ 2.52 billion in the second quarter, or $ 1.54 per share, against $ 1.33 billion, $ 0.85 per share, a year earlier.
Analysts polled by Thomson Reuters I / B / E / S on average expected $ 1.20 per share.
Revenues came out up 19% to 39.4 billion, better than the 36.74 billion expected by the consensus.
In pre-market as the General Motors rose 2%.
In the opinion of Chief Financial Officer Dan Ammann, the second quarter of 2011 represents a “solid foundation element” for the company.
“The level of uncertainty has increased, but we tried and we succeeded in placing our relatively low break-even, with a strong balance sheet, to cope with any scenario,” he explained.
GM is trying to break into the market for small fuel-efficient vehicles, where it already has the Chevrolet Cruze. Much of its profits, however, still rely on the most profitable segment of pick-ups.
The results are announced this Thursday on the second full quarter of the group.
The good results of GM could be partly due to major difficulties faced by Japanese rival Toyota, faced with a shortage of vehicles for sale after the earthquake of March 11.
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